Why did Verizon not provide a reconciliation for its Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast?

Verizon stated that they cannot provide a reconciliation for the forecast without significant effort because they cannot predict the impact of 'special items' that might occur during 2021. These unpredictable items can affect the calculation of Consolidated Adjusted EBITDA.

Are the financial metrics presented in the infographic considered official financial statements?

The filing clarifies that the infographic contains both GAAP and non-GAAP financial information. While non-GAAP measures are provided to enhance understanding, they should be considered in addition to, not instead of, the company's official financial statements prepared in accordance with GAAP. The information furnished under Item 7.01 is generally not considered 'filed' with the SEC.

VZ 8-K: Regulation FD — Mar 11, 2021

Q: What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to furnish an infographic that was part of an investor presentation on March 10, 2021. This infographic likely provides updated information on Verizon's business and financial performance.

Q: What is the 'Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast' and why is it important?

This is a non-GAAP financial measure that Verizon believes is useful for investors and management to evaluate the company's ability to pay back its unsecured debt using earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA), excluding certain items. It's a key indicator of financial health and leverage.

Summary

Verizon Communications Inc. (VZ) filed an 8-K on March 11, 2021, primarily to furnish an infographic released in conjunction with an investor presentation on March 10, 2021. This infographic likely contains updated business and financial information intended to provide investors with a more comprehensive understanding of the company's performance and outlook. The filing also clarifies Verizon's use of non-GAAP financial measures, emphasizing their supplementary nature to GAAP reporting and their utility in assessing both consolidated and segment performance. Key to investor understanding is Verizon's discussion of its 'Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast.' This non-GAAP metric is presented as a critical tool for evaluating the company's ability to service its unsecured debt from ongoing operations. The company provides a definition of how this ratio is calculated and why it is considered useful by management and investors. Notably, Verizon states it cannot provide a reconciliation for the forecast due to the unpredictable nature of certain 'special items' that could impact the calculation for 2021.

Key Highlights

1Verizon released an infographic on March 10, 2021, via an investor presentation, which is furnished as part of this 8-K filing.
2The infographic contains both GAAP and non-GAAP financial information for investor analysis.
3Verizon emphasizes the supplementary nature of non-GAAP measures, stating they enhance the understanding of GAAP financial information.
4The filing highlights the 'Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast' as a key metric for assessing debt serviceability.
5The calculation methodology for Net Unsecured Debt and Consolidated Adjusted EBITDA is provided.
6Verizon explains that a reconciliation for the Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast cannot be provided due to the unpredictable impact of 'special items' in 2021.
7The filing includes standard cover page interactive data file (XBRL).

VERIZON COMMUNICATIONS INC 8-K Report, Regulation FD Disclosure (Mar 11, 2021)

Summary

Key Highlights

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